• GM's second-quarter earnings fall 32% to $3 billion due to $1.1 billion tariff impact.
• Revenue decreases nearly 2% to $47 billion, surpassing analyst expectations.
• Company maintains annual profit forecast between $10 billion and $12.5 billion.
• Sales of pickup trucks and SUVs remain strong despite overall market challenges.
• GM plans $4 billion investment in U.S. manufacturing to mitigate tariff effects.

General Motors (GM) reported a substantial 32% decline in second-quarter core profit, dropping to $3 billion, impacted heavily by tariffs totaling $1.1 billion. Despite this significant loss, GM's revenue for the quarter ended June 30 remains robust at approximately $47 billion, outpacing analysts' expectations of $45.84 billion. The company's adjusted earnings per share fell to $2.53, down from $3.06 a year prior, according to Reuters, Reuters, and India Times.

As tariffs continue to exert financial pressure, GM has lowered its annual adjusted profit forecast to a range of $10 billion to $12.5 billion, a move that reflects the ongoing challenges from trade policies. GM's leadership indicated they could mitigate at least 30% of these impacts, emphasizing financial adjustments as strategic responses, according to South China Morning Post, HuffPost, and India Times.

GM's CEO, Mary Barra, stated that they are "positioning the business for a profitable, long-term future" and are focusing on maintaining resilient sales in the U.S. This quarter, U.S. sales rose by 7%, particularly in the truck and SUV markets, indicating that their core business remains solid even amidst tariffs. Nonetheless, the tariff impacts are expected to worsen, with predictions of $4 billion to $5 billion hitting the bottom line, as noted by Reuters and South China Morning Post.

In light of these challenges, GM has announced a significant $4 billion investment across three U.S. facilities to shift production back from Mexico, boosting local manufacturing capabilities. This investment includes plans to increase production of several vehicle models, thereby addressing some of the tariff cost burdens. Furthermore, GM is adapting strategies, such as bolstering its internal combustion-engine operations, in response to legislative changes affecting electric vehicle incentives, as stated by South China Morning Post, Reuters, and HuffPost.